As part of an investigation into the network of Hawala operators and illegal Forex Dealers in the state of Kerala, the Directorate of Enforcement (ED) conducted searches on June 19, 2023, at 14 sites in Kerala under the terms of the FEMA, 1999. The searches were carried out based on information that the hawala activities were being run in various locations under the pretext of forex money exchange, gift shops, textile, jewellery, and ready-to-wear stores.
As part of the search operation, M/s Suresh Forex, M/s Ettumanoor Forex, M/s Dubai Forex, M/s Sangeetha Foreign Exchange, M/s Crescent Trading, M/s Hana Trading, and M/s Fornas Forex Pvt Ltd were some of the entities that were identified as key players in the hawala network and covered.
Approximately Rs. 1.50 crore worth of Assorted Foreign Currencies from more than 15 countries were confiscated. Additionally, a significant amount of unaccounted Indian rupees worth around Rs. 1.40 crore that was obtained through illegal currency exchange were found and seized during the investigation.
Additionally, searches have shown that these people and companies engaged in illicit currency exchange transactions and are also responsible for setting up cross-border transfers to countries like Dubai, the USA, Canada, etc. through the Hawala method rather than official banking channels. Without obtaining KYC or providing invoices, the operators confessed to engaging in unlawful forex transactions. The WhatsApp discussions and voice notes that were recovered from these people’s devices showed how the hawala operations, which regularly make in excess of a crore of rupees, operate.
With the aid of forensic experts, additional material from more than 50 mobile phones and other electronic devices seized during searches is being reviewed for further operational analysis and to pinpoint the wider cross-border hawala network and its patrons. The other illicit currency dealers involved in hawala transactions are currently the subject of additional inquiry.
